InvestorsHub Logo
Followers 19
Posts 1066
Boards Moderated 0
Alias Born 10/16/2003

Re: morechocolate post# 10263

Friday, 01/09/2009 11:18:04 AM

Friday, January 09, 2009 11:18:04 AM

Post# of 27745
You can get a good idea of whats going on by looking at the charts at the bottom of the I-Box.

Start with the regular price chart. It basically shows that we have a breakout. 50 day average is at 0.18 and 20 day at 19. These are your supports. The 200 day, which is not in the plot is now at 0.30. That will be a resistance point when we get there

the Full Stochastic which is a momentum indicator is pegged. Sits at 98. 100 is maximum and is a number you cannot get to.

The ADX which is a "strength of the trend" indicator (black line) is going hyperbolic but is still a little low. As you can see the ADX has moved from below 20 to above 20. This is a sign that the lifeless trading range below 0.02 we had is ending and a trend is developing. You want it to climb over 30 for confirmation. Over 40 is outstanding and is a long term wweeeeeeeeeeeeeeeeeeeeee

I use the MACD as a signal and divergence indicator. The widening gap between the red and black line shows that the positive momentum is increasing, indicating a bullish period. The signal to the upside is at the crossover at end of December, same thing for the Stochastic

But fundamentally, charts are kind of useless during a breakout, except you may get an idea where the resistance lays. It's all going up anyway



"You can't be a real country unless you have a beer and an airline - it helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer". F Zappa

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.